Rodriguez Company completed its income statement and balance sheet for 2015 and provided the following information: In Addition, Rodriguez bought a small service machine for $ 5000. Required: 1. Present the operating activities section of the statement of cash flows
In Addition, Rodriguez bought a small service machine for $ 5000.
1. Present the operating activities section of the statement of cash flows for Rodriguez Company using the indirect method.
2. What were the major reasons that Rodriguez was able to report a net loss but positive cash flow from operations? Why are the reasons for the difference between cash flow from operations and net income important to financialanalysts?
Income Statement for 2015 Service revenue S54,000 Expenses $46,000 4,500 200 9,700 Salaries Depreciation Amortization of copyrights Other expenses Net loss 60,400 $(6,400) Partial Balance Sheet Accounts receivable Salaries payable Other accrued liabilities 2015 $8,000 12,000 1,000 2014 S13,000 1,000 2,800
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Req 1 Cash flows from operating activities indirect method Net loss 6 400 Depre…View the full answer
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